Real-Life Communication -- Solution
Here's what you can tell the banker:
"I understand
your concern. There are many good things about this house, so I can see why
it could have sold for $720,000. However, let me explain how I came to this
value.
"As I wrote in my report, there are many positive things about
this house. It is in good condition and is close to schools and shopping malls.
For these reasons, I could see a family, especially, being attracted to it.
"However,
the reasons I assessed it at only $680,000 are as follows. Most importantly,
there is a gas station being built beside it. This might not have been known
about when the house was last sold. The gas station is going to increase the
traffic in the area. It's also going to add to the existing noise problem.
"There
are two reasons there's a noise problem already. First, there is a convenience
store beside the house. Second, there's an auto-wrecker's lot across the road.
This makes it noisy during the day and makes for unpleasant scenery.
"I've
considered all the positive and negative aspects of this property. After weighing
them all, I believe this property to be worth just $680,000.
Are there any areas you'd like me to explain further?"
Communication
skills are valuable for real estate appraisers. It is especially important
to be able to write well.
Almost always, an appraiser's opinion will
be given in writing. This helps the appraiser think through both positive
and negative aspects of a property before coming to a final value. It's also
for the appraiser's own protection.
"The best opinion we can give is
in writing," says real estate appraiser Joe Massey.
"We can also speak
verbally and be taken to task for it. If you render an opinion, whether you're
doing it verbally or in writing, it's equally binding."
This means
you have to be able to back up any opinion you express. That's why it's best
to save your opinion for your written report.
This written report needs
to clearly explain how you arrived at the value you did.
"You arrive
at your ideas just from research, so being able to communicate them effectively
is very, very important," Massey says.
"We have got to write things
that everybody can understand," he adds. "You never know where they're going
to end up. They could end up in the garbage. They could end up in a corporate
boardroom. They could end up anywhere."